One in three people here are struggling with mounting debts and unable to pay their bills on time, a shocking report has revealed.

The number of debt-ridden Irish households (33%) is much higher than the European average of 27%, while most admit they don’t have enough money for a “dignified existence”.

Households’ inability to pay bills on time has increased since last year, according to the European Consumer Payment Report 2016.

Meanwhile, just one in three people have hope that their financial situation will get any better.

Author of the report Mikael Ericson, the CEO and President of Intrum Justitia said: “The results shows that a substantial portion of all households struggle, and that many have been forced to borrow money to pay bills.

“Our own data also indicates that people who take on debt early in life tend to remain in that situation as they grow older.

“This of course is very troublesome for people in economic difficulties but it also constitutes a challenge for, and a threat against, companies and their ability to grow and to hire new staff.”

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When hard-pressed people need to borrow money they turn to family (38%), followed by their bank (27%) and over load on credit card (22%).

One in three (33%) people said that they are sometimes unable to pay their debts today and 37% believe that they will not be financially better off than their parents.

As many as 13% of those surveyed said they would consider moving to another country due to the financial situation, while 70%, disagreed that their personal financial situation is ‘getting better’.

A massive 85% of respondents agreed that children should learn more about the household economy in school, while 49% believe that they will need to financially support their children after they move out.